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Upturn AI SWOT - About
CSWC 
Capital Southwest Corporation (CSWC)
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Upturn Advisory Summary
08/28/2025: CSWC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
7 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $24
1 Year Target Price $24
| 2 | Strong Buy |
| 1 | Buy |
| 4 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 35.67% | Avg. Invested days 48 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 08/28/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.27B USD | Price to earnings Ratio 13.94 | 1Y Target Price 24 |
Price to earnings Ratio 13.94 | 1Y Target Price 24 | ||
Volume (30-day avg) 7 | Beta 1.03 | 52 Weeks Range 16.66 - 23.31 | Updated Date 08/29/2025 |
52 Weeks Range 16.66 - 23.31 | Updated Date 08/29/2025 | ||
Dividends yield (FY) 10.24% | Basic EPS (TTM) 1.64 |
Earnings Date
Report Date 2025-08-04 | When After Market | Estimate 0.5974 | Actual 0.59 |
Profitability
Profit Margin 39.95% | Operating Margin (TTM) 85.76% |
Management Effectiveness
Return on Assets (TTM) 6.55% | Return on Equity (TTM) 9.86% |
Valuation
Trailing PE 13.94 | Forward PE 10.01 | Enterprise Value 2155827456 | Price to Sales(TTM) 6.08 |
Enterprise Value 2155827456 | Price to Sales(TTM) 6.08 | ||
Enterprise Value to Revenue 17.8 | Enterprise Value to EBITDA - | Shares Outstanding 55628500 | Shares Floating 53935128 |
Shares Outstanding 55628500 | Shares Floating 53935128 | ||
Percent Insiders 4.08 | Percent Institutions 33.41 |
Upturn AI SWOT
Capital Southwest Corporation
Company Overview
History and Background
Capital Southwest Corporation (CSWC) was founded in 1961 as a public venture capital firm. Initially focused on small business investments in the Southwest, it has evolved into a business development company (BDC) primarily investing in lower middle market companies. Key milestones include its transition to a BDC structure and strategic shifts in investment focus.
Core Business Areas
- Investment Activities: CSWC focuses on providing debt and equity capital to lower middle market companies, typically with EBITDA between $3 million and $20 million.
- Credit Investments: The company invests primarily in first lien senior secured debt, second lien senior secured debt, and unitranche debt. It also makes opportunistic equity investments.
Leadership and Structure
The company is led by Bowen Diehl (President & CEO). The organizational structure involves investment teams focused on sourcing, underwriting, and managing portfolio companies. The board oversees strategic direction and governance.
Top Products and Market Share
Key Offerings
- First Lien Senior Secured Debt: CSWC's primary investment strategy involves providing first lien senior secured debt to lower middle market companies. Market share data is not publicly available at the individual product level. Competitors include other BDCs, private credit funds, and banks.
- Second Lien Senior Secured Debt: CSWC also invests in second lien senior secured debt. Market share data is not publicly available at the individual product level. Competitors include other BDCs, private credit funds, and banks.
- Unitranche Debt: CSWC offers customized debt solutions with the characteristics of both senior and subordinated debt. Market share data is not publicly available at the individual product level. Competitors include other BDCs, private credit funds, and banks.
- Equity Co-Investments: Along with Debt CSWC provides equity support. Competitors are VC firms.
Market Dynamics
Industry Overview
The BDC industry is highly competitive, with numerous firms vying to provide capital to lower middle market companies. The industry is sensitive to interest rate changes and economic conditions. Regulation is high.
Positioning
CSWC is positioned as a provider of flexible capital solutions to lower middle market companies. Its competitive advantages include a strong track record, experienced management team, and disciplined investment approach.
Total Addressable Market (TAM)
The TAM is estimated to be in the tens of billions of dollars, comprising the aggregate capital needs of lower middle market companies. CSWC captures a small portion of this TAM, aiming for a focus on companies that fit its specialization.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Disciplined investment approach
- Strong track record
- Flexible capital solutions
- Diversified portfolio
Weaknesses
- Reliance on external financing
- Exposure to credit risk
- Sensitivity to interest rate changes
- Dependence on key personnel
Opportunities
- Increased demand for private credit
- Expansion into new industry sectors
- Strategic acquisitions of other BDCs
- Increase investment in equity
Threats
- Economic downturn
- Increased competition
- Regulatory changes
- Rising interest rates
- Deterioration of portfolio company performance
Competitors and Market Share
Key Competitors
- Main Street Capital (MAIN)
- Ares Capital Corporation (ARCC)
- Prospect Capital Corporation (PSEC)
Competitive Landscape
CSWC competes with other BDCs based on investment terms, industry expertise, and portfolio performance. Its smaller size can allow for more nimble investment decisions, but it also faces greater capital constraints compared to larger competitors.
Growth Trajectory and Initiatives
Historical Growth: CSWC's growth has been driven by strategic investments and effective portfolio management.
Future Projections: Future growth projections are subject to market conditions and company performance. Analyst estimates vary.
Recent Initiatives: Recent initiatives include strategic portfolio management and capital raising activities.
Summary
Capital Southwest Corporation is a business development company focused on lower middle market lending. The company has an experienced management team and a diversified portfolio. However, it faces risks related to credit quality, interest rate changes, and economic downturns. CSWC must continue to effectively manage its portfolio and adapt to changing market conditions to drive future growth. CSWC's main need is to increase its market share against its bigger rivals.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Capital Southwest Corporation Investor Relations
- SEC Filings
- Analyst Reports
- Company Press Releases
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market share data is based on available information and may not be precise. Financial data is subject to change based on company performance and market conditions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Capital Southwest Corporation
Exchange NASDAQ | Headquaters Dallas, TX, United States | ||
IPO Launch date 1990-03-27 | CEO - | ||
Sector Financial Services | Industry Asset Management | Full time employees 30 | Website https://www.capitalsouthwest.com |
Full time employees 30 | Website https://www.capitalsouthwest.com | ||
Capital Southwest Corporation is a business development company specializing in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, industry consolidation, recapitalizations and growth capital investments. The firm does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing. In lower middle market, the firm typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyouts situations. The investment structures are Unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. The firm makes equity co-investments alongside debt investments, up to 20% of total check and only makes non-control investments. The firm is Industry agnostic, but it prefers to invest in Industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, tech-enabled services and SaaS models. The firm seeks to invest in energy services and products, industrial technologies, and specialty chemicals and products. Within energy services and products, the firm seeks to invest in each segment of the industry, including upstream, midstream and downstream, excluding exploration and production with a focus on differentiated products and services, equipment and tool rental, consumable products, and drilling and completion chemicals. Within industrial technologies, it seeks to invest in automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, measurement, monitoring and testing, professional tools, and sensors and instrumentation. Within and specialty chemicals and produc
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